La gas war burns billions on European squares, who start the week in the red after last Friday's robust recovery. The euro falls by around 99 cents against the dollar (after falling below that threshold, to its lowest since 2002), while the prices of methane and oil rise, waiting for the ECB to decide on Thursday how much to raise rates of interest. Risk aversion penalizes sovereign bonds, especially the Italian paper and no new came in the afternoon from wall street, closed for Labor day.
Frankfurt and Milan lead the declines in Europe
The black jersey belongs today to Frankfurt, -2,22%, particularly alarmed by the fact that Gazprom has decided to stop flows from Nord Stream 1 indefinitely. Uniper (-10,55%) does not rule out the possibility that Berlin may consequently evaluate gas rationing.
It follows at a short distance Business Square, -2,01%, 21.480 points which has almost all blue chips down, apart from Eni +1,69% and Tenaris + 0,92%.
Losses are smaller a Madrid -0,88% and Amsterdam -0,66% and is flat London, +0,09%, on the day the British Conservative Party chose its new leader and then prime minister of the country. It's about Liz Truss, former secretary of the Foreign Office of Boris Johnson's government. The news, while expected, is not exciting for the eurozone as Truss is ready to challenge the blockade on Northern Ireland deals. Sterling remains weak against the dollar at its lowest since March 2020.
Oil rallying with production cuts, gas rises
With the usual dilemma at stake, recession or inflation, the ECB is due to meet on Thursday and, according to Reuters, markets are giving a 75% chance that the move will be 75 basis points.
Both contribute to the race in prices today Petroleum and the gas.
WTI and Brent futures rally after decision of Opec + to cut production in October by 100 barrels a day, equal to 0,1% of global demand. The cartel and its allies could also meet at any time to adjust production before the next meeting, scheduled for October 5th. Brent rose by 4% to 96,82 dollars a barrel and Wti grew by a similar percentage, over 90 dollars.
As for the gas lo stop the flows of Nord Stream 1 it pushed prices up to 284 euros in the morning (+25%). The Kremlin then warned that it will not resume supplies until the West lifts the sanctions, but the race for futures has slowed down to 242 euro MWh (+12). A decision on the ceiling on the price of Russian gas is now awaited from the meeting of EU energy ministers on 9 September.
Meanwhile Moscow promises revenge both in the case of cap on Russian oil from the G7, and for gas from the EU.
Euro at 20-year low; the spread goes up
The tug-of-war between Europe and Russia over Ukraine and consequently over gas supplies i fears of recession and weighs on the euro, which fell below 99 cents during the day as it hasn't happened since December 2002. At the moment the cross is around 0,992.
In view of the ECB, the Italian secondary closes in the red: lo spread between 10-year BTPs and Bunds with the same duration, it rises to 236 basis points (+2,44%) and rates are growing. The Italian 4-year bond is once again approaching 3,93%, closing at +1,56%, while its German counterpart stops at +XNUMX%.
Piazza Affari suffer industry and banks
The main price list of Piazza Affari is almost entirely negative and sales have largely spread across all sectors starting from the cyclical ones and more sensitive to energy prices, including industry and banks.
At the bottom of the basket is Pirelli with a loss of 5,06%. The automotive is also penalized with stellantis -4,79% Iveco -4,15%. The important spmp leaks, furthermore, for Interpump -4,82% and Campari -4,32%. Among the banks the worst is Bpm bank -3,46%, but outside the main basket Ps goes further and further down, -4,65%, after the green light from the ECB the capital strengthening operation which will be submitted to the shareholders' meeting on 15 September.
The utilities file a negative session. Snam loses 1,84%. According to CEO Stefano Venier however, the impact on Italy of the suspension of the transport of Russian gas via the Nord Stream pipeline is "very indirect" because almost all of the Russian supplies to the Italian State arrive via the pipeline which crosses Ukraine, lands in Austria and then arrives in Tarvisio. For storage "we have reached a filling level of around 83,5%, we still need one billion and two hundred million to reach the target of 90%". But the path of the regasifiers he must continue: “we are in the period of the procedure assigned to the various commissioners, which is expected to be completed by the end of October. From there we will start with the work. The first plant that we should have in operation for next spring is that of Piombino and in 2024 we count on having the one in Ravenna ".
Out of the main basket it flies Gas Plus + 12,19%.
